• The Journal of Asian Finance, Economics and Business
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• v.6 no.4
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• pp.179-187
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• 2019

This study aims to investigate the effects of market commonality and resource similarity on price competition and the recursive consequences in the Korean lodging market. Price comparison among hotels in the same geographic market has been facilitated through the development of information technology, rendering little search cost of consumers. While the literature implies the heterogeneous price attack and response among hotels, a limited number of empirical researches focus on the asymmetric and recursive pattern in the competitive dynamics. This study empirically examines the price interactions in the Korean lodging market based on the theoretical framework of competitive price interactions and countervailing power. Demonstrating superiority to the spatial lag model and the ordinary least squares in the estimation, the results from spatial error model suggest that the hotels with longer operational history pose an asymmetric impact on the price of the newer hotels. The asymmetry is also found in chain hotels over the independent, further implying the possibility of predatory pricing. The findings of this study provide the evidence of a hierarchical structure in the price competition, with different countervailing power by the resources of the hotels. Theoretical and managerial implications are discussed, with suggestions for future study.

• The Journal of Fisheries Business Administration
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• v.40 no.1
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• pp.27-49
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• 2009

Recently, the Korea's economy concerns the second money crisis because of the rapid increase of the exchange rate. The Korea's economy which is very dependent on the foreign trade is more sensitive to the change of exchange rates. There are many literatures which analyze the effects of variations of the exchange rates on the secondary and tertiary industries such as the manufacturing industry and IT(Information Technology). But there have been no studies which try to figure out the effects of variations of exchange rate on the primary industries, especially, fisheries' industry. Therefore this paper tries to analyze the effect of price competition structure and the change of exchange rate on foreign fisheries exporting prices in Korea's fisheries import market. This study utilizes OLS(Ordinary Least Squares Analysis) for the analysis in the market of frozen yellow corvina, hairtail, angler fish which are major fisheries importable in Korea. The results show that the exporting country which has the highest market share is more sensitive to the change of the exchange rates itself than that of the other exporting countries' price when it starts to set up its exporting price. And the exporting countries which have low market share are more sensitive to the change of price which country has the highest market share than that of price whose countries have low market share and those of their exchange rate. Also we can find out that the countries which have similar market share try to set up price-setting strategy in the opposite direction. In other words, one country tries to bid up its price, other countries response to rival country by lowering their prices. In the consideration of the fact that most exporting countries aren't affected by Korea's fisheries' prices, the exporting countries in Korea's fisheries import market are more sensitive to the prices of other exporting countries than that of Korea's. This result indicates that the price leader-follower model could be applicable to the Korea's fisheries import market.

• Asia Marketing Journal
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• v.19 no.4
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• pp.37-59
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• 2018

This study investigates the effects of the distribution channel structure on quality decisions under duopoly competition. I considers a set-up in which two retailers compete on product quality and retail price. In the set-up, the integrated retailer has the power to determine the quality of its exclusive product, while the decentralized retailer does not. For the decentralized retailer, the supplier determines product quality. I find that asymmetric pairs of a decentralized channel by one retailer and an integrated channel by the other retailer can be a Nash equilibrium in a simultaneous-channel-choice model. The two retailers select different levels of quality, and this quality competition benefits retailers by softening price competition. In a sequential-channel-choice model, I find that the leader can obtain a first-mover advantage. From the perspective of the supplier, which can decide the distribution channel structure and level of quality, both suppliers choose the decentralized channel in equilibrium.

• Proceedings of the KIEE Conference
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• 2001.07a
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• pp.512-514
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• 2001

Recently, Korea's electric industry is in the midst of a period of profound changes in the structure and function, including the introduction of market competition in the generation sector. Korea is in the early stages of market competition, so the market price is chosen by generation costs but will be chosen by bids in future. Therefore, the profits of generators is determined by market pool price and the prospects of pool price are very important for new capacity investment determination of generators and IPPs. This study analyzes hourly marginal costs and LOLP considering basic generation mix and characteristics, develops the relationship of pool price using the above in competition market, and proposes basic direction for profits variation and supply-demand analysis in the electric market in future.

• Proceedings of the KIEE Conference
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• 2000.07a
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• pp.376-378
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• 2000

The current worldwide electricity market introduced competition, which is breaking up the monopoly structure and also enforcing phased structural reform in South Korea. The change of the electricity charge from cost base to price base due to the introduction of the electricity market competition causes consumer to choose a variety of charge schemes and a portion of loads to be affected by this change. Therefore, in order to find a mathematical model of the sensitively-responding-to-price loads and reflect this to the DSM demand management, the price-sensitive load model is needed. Thus, this paper first proposes the composite price-sensitive load model that is expressed as a function of price, presents the methodology to estimate price-sensitive load model at each bus by bus load compositions.

• The Transactions of the Korean Institute of Electrical Engineers A
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• v.51 no.6
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• pp.269-275
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• 2002

Recently, Korea's electric industry has experienced substantial changes in its structure and function including the introduction of competition in the generation sector. Korea is in the early stages of market competition where the market price is determined by generation costs. In the future, the market Price will be determined by generators'bids. Therefore, the generators'profit is determined by market pool price, the prospects of pool price are very important for new capacity investment decision made by generators and IPPS. This study analyzes hourly marginal costs and LOLP considering basic generation mix and characteristics develops the relationship of pool price and Profit by generation-type using the change in reserve margin, and proposes basic direction for profits variation and supply-demand analysis in the electricity market in future.

• Korean Journal of Organic Agriculture
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• v.15 no.2
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• pp.151-169
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• 2007

By the environment-friendly(hereafter EF) agricultural policy and toward the safety food of consumers, there is much glowing supply and demand fur EF agricultural products, in Korea. But, in general, EF agricultural products are blown as unique, unreasonable and high price system. This study aims to make clare the main bodies and competition structure in EF agricultural products and the different from the agricultural products. The mail results of this study are summarized as follows. Firstly, farmers and consumers directly participate in the distribution, and the major distributors participate in the market of EF agricultural products after the certification system is got ready. Because EF agricultural products is not dealt and the price system is not built up in agricultural wholesale market. Secondly, the distribution route of EF agricultural products is organized the unified organization by the main bodies such as farmers, consumers co-op, and special distributors. In any step of distribution, the main body of distribution surely deals with the contracted farmers, consumers co-op, and special distributors. Accordingly, it is said that EF agricultural products has the competition structure between the distribution route organized the unified organization rather than between main bodies in the each steps of distribution.

• Journal of the Korean Operations Research and Management Science Society
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• v.34 no.1
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• pp.85-100
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• 2009

An online marketplace, such as eBay, is an example of two-sided markets. In online marketplaces, there are transactions between sellers and buyers and direct competition effects among sellers and among buyers. Previous research on two-sided market has not handle these competition effects and mostly focused on indirect network externalities between sellers and buyers. We analyze the fee structure of an online marketplace considering direct competition effects among sellers and among buyers. We find that when fees for sellers and buyers can be imposed, an auction or fixed-pricing rule can be chosen according to the characteristics of a product traded. But when only fees for sellers can be imposed, an auction can be taken as a trading mechanism solely.

• Korea Trade Review
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• v.48 no.2
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• pp.129-151
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• 2023

This study explores whether market share matters for ERPT and also for the effects of FTA on ERPT among exporting countries in the four major fishery import markets - frozen pollock, frozen mackerel, frozen tuna, and frozen spawn in South Korea. In addition, I investigate whether market share matters for price competition among exporting countries. For this, I estimate the export price equation based on the maximum likelihood method by utilizing data on export price in terms of Korean currency, and the cross rate between South Korea and the exporting countries from 2010:M1 to 2019:M12 for the four major fishery import markets. According to the findings, the market share of exporting countries in the import markets matters for the positive effects of FTA on ERPT; however, it is hard to find the relation between the market share of exporting counties and ERPT. In addition, I find little evidence on the effects of market share on price competition structures among exporting countries. I believe that this study helps domestic fishery producers to understand that ERPT, the effect of FTA on ERPT, and price competition structures among exporting countries would be affected by the market share of each exporting country in the major fishery import markets in South Korea. Also, this study would help domestic fishery producers to think about how to deal with the effects of the change in the exchange rate on fishery markets for each FTA partner according to its market share after FTA is effective.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.48
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• pp.57-76
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• 2010

This study reviews maritime transport policy regarding liner conference and the changes in the liner market over the decades. Liner shipping industry has long been protected from competition by block exemption. To prevent excessive competition in punctual operation and its inelastic market structure, liner shipping companies formed conferences that are protected to fix the prices under the law. In the US, deregulation in transport sector began from 80's and continuing with OSRA 1998, conferences were dissolving. On the other hand, the EU with close conference system, Regulation 4056/86 contained block exemption remained in force for unlimited time without review clause. However, in Oct 2008, the EU has announced its removal, and conferences were no longer permitted to fix the price nor exchange information. Although OSRA 1998 has already broken up conferences by allowing individual service contracts, but the repeal of the immunity for price fixing will alter significantly the rule on cooperation in the industry since it is a unilateral move by the EU, especially in transatlantic lane. There are rapid changes in shipping market getting much more complicated, and with removal of 4056/86 allowing the market to be more competitive, opening up the industry with far more diverse strategic options. Hence this paper reviews on liner shipping industry and its changes of policies over the years from protected market to open competition market of today.